Sanko, Mukoyama to Integrate Small Bar Sales

Kanagawa based Sanko Seiko and Saitama based Mukoyama Steel Works, both of which are small sized steel bar electric furnace steel makers, will establish 50/50 joint sales company with 70 million yen of capital on June 2 in Tokyo starting operation on July 18. That is the first attempt for joint sales of small sized steel bar while base sized steel bar makers have such joint sales force around Tokyo. Sanko Seiko and Mukoyama Steel Works try to improve the efficiency through the joint venture preparing for market shrink in future. They manage the joint venture by top management of them. The joint venture could contribute to improve stability for the small sized steel bar market along with base size bar sales joint venture between Godo Steel and Tokyo Tekko. Sanko Seiko and Mukoyama Steel Works produce each annual 320,000 tonnes of steel bar with 10-16 millimeters of diameter. They have both more than 30% of market share for the smaller sized steel bar around Tokyo. They were willing to establish such joint venture before. An official of Sanko Seiko said the attempt accelerated since 5-6 years ago. The partnership is for only sales while they don’t intend to integrate the production facilities and operations and distribution. Godo Steel and Tokyo Tekko started joint sales company in April 2002. The joint sales force sells around 680,000 tonnes per year with around 35% of market share for base size steel bar around Tokyo.